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Example #1: Liquid Resources The community spousal protected resources were determined to be $12,000. After approval, the community spouse transferred $8,600 of resources to his/her name only. This leaves a balance of $3,400 in spousal protected resources. Later, the institutionalized spouse receives a retroactive VA benefit check for $13,000; $10,000 remains the month after receipt and is a countable resource. Since the balance of the spousal protected resources is $3,400, this is the maximum that can be protected. The difference of $6,600 ($10,000 – $3,400) remains a countable resource to the institutionalized spouse and renders him/her ineligible for Medicaid. Example #2: Non-Liquid Resources The institutionalized and community spouse receives an inheritance of vacant land valued at $5,000. One–half is available to each spouse ($2,500). The spousal protected resources were determined to be $12,000. Of this $12,000, the community spouse used $6,000 to transfer resources to his/her name after approval. Therefore, the community spouse has a $6,000 balance in resource protection. One–half of the vacant land ($2,500) is available to the community spouse. Since there is a balance of $6,000 in protected resources, the institutionalized spouse remains resource eligible by protecting his/her share of the vacant land. Transfer his/her share of the vacant land ($2,500) to the community spouse. In this example, the new balance of the spousal protected resources would then be $3,500. F-115.3 Resource Exemptions Exclude one vehicle without regard to use or value. An individual who has received benefits under a qualified long-term care partnership insurance policy is eligible for a resource disregard equal to the amount of insurance benefits paid to or on behalf of the individual at the time of Medicaid application. Allow the resource disregard even if additional benefits remain available under the terms of the policy. Only qualified long-term care partnership policies purchased after January 1, 2007, meet the resource exemption rules. Beneficiaries must provide a certificate indicating the amount of benefits issued and certifying the policy as a qualified partnership policy. The state will not seek adjustment or recovery from the individual’s estate for assets or resources disregarded. Note: LTC resource exclusion does apply to home equity in excess of $713,000. F-115.4 Resource Limits The value of all countable resources of the customer cannot be more than $2,000. When the resource limit is exceeded, the case is ineligible. Individuals with home equity interest exceeding $713,000 are ineligible for long-term care services. F-120 PATIENT LIABILITY Patient liability is a post-eligibility calculation to determine the total amount of the institutionalized individual’s income applied to the cost of institutional care. There is no patient liability for any portion of institutionalization (full or partial month stays) in a VA hospital, AGCF, FCH, freestanding psychiatric hospital or RTC F-1115.2.9 LONG TERM CARE SERVICES Additional Resources Following Initial Eligibility Division of Social Services Medical Assistance Manual 08 Aug MTL 08/25